POLICY WATCH - PUBLIC PROCUREMENT POLICY AND E-AUCTION
- The public procurement policy AIMS at incentivizing production linked through
local content requirements, thereby increasing domestic manufacturers
participation and public procurement activities over and entities merely important
to trade or assemble items.
- Various ministers and departments have been designated as nodal for define
minimum local content for the relevant product categories.
- The government has notified public procurement policy for micro and small
enterprises as well. Under this policy come on 25% of annual procurement by
central Ministries / departments / public sector enterprises has to be made from
micro and small enterprises.
- The target is for government departments, public sector undertaking and
- Make in India public procurement ordered success could be gained, more than
15000 crore worth of tenders for cancelled at instance because of discriminatory
conditions prohibiting the local vendors to participate in tender.
- The Government of India through its various departments buys about 5 lakh crore
worth of goods and services every year, 25% of that is quite substantial. There are
20,000 sellers who are registered on a platform and selling about 50,000 products
and paperwork is eliminated, vendor registration being made simple.
Challenges that private entrepreneurs are facing on government E-marketplace:-
• It is difficult for small and medium companies to participate in tenders because they
have to meet certain criteria.
• Do they qualified to supply those quality products which are made mandatory, it’s a
policy that 25% material will be taken by small Enterprises.
- Medium enterprises for instance, its turnover should be below 250 crore. A large
number of companies can qualify and do qualified.
- To implement procurement policy of reservation in favor MSME there could be two
1. For every procurement order split the items which is not possible, certain
items can not be splited.
2. Certain orders can be placed on experimental basis for products which are
not successfully on the shelf.
- Procurement policy can help the startups in long way. But its not
that easy. Startups have to do competition with the big ships which is
a big challenge.
- Government has to make lot of criterias to ensure that all the
products they are buying from small entrepreneurs really meeting
all the parameters and quality standard.
- E-Auction – where human interface is minimum.
- Major policy Reform that has happened in the procurement area is
the introduction of moving away from L1 process.
- The department of financial services launched properties which
- There has to be full transparency for E -Auction for each property
(3500 properties have been listed on the portal) the bank has to do a
lot of work and also to provide everything upfront.